{"id":57,"date":"2009-07-24T09:51:22","date_gmt":"2009-07-24T16:51:22","guid":{"rendered":"http:\/\/www.jerrybice.com\/wordpress\/?p=57"},"modified":"2009-07-24T09:51:22","modified_gmt":"2009-07-24T16:51:22","slug":"nar-existing-home-sales-rise-again","status":"publish","type":"post","link":"https:\/\/www.jerrybice.com\/wordpress\/nar-existing-home-sales-rise-again\/","title":{"rendered":"NAR: Existing-Home Sales Rise Again"},"content":{"rendered":"

Existing-home sales rose for the third consecutive month with inventory easing and home prices declining less sharply in June, according to the National Association of REALTORS\u00c2\u00ae.<\/span><\/p>\n

Existing-home sales<\/span><\/span><\/a> \u00e2\u20ac\u201d including single-family, townhomes, condominiums, and co-ops \u00e2\u20ac\u201d increased 3.6 percent to a seasonally adjusted annual rate<\/span> of 4.89 million units in June from a downwardly revised pace of 4.72 million in May, but are 0.2 percent lower than the 4.90 million-unit level in June 2008.<\/span><\/p>\n

Lawrence Yun, NAR chief economist, is hopeful about the gain.<\/span><\/p>\n

\u00e2\u20ac\u0153The increase in existing-home sales occurred in all major regions of the country,\u00e2\u20ac\u009d he says. \u00e2\u20ac\u0153We expect a gradual uptrend in sales to continue due to tax-credit incentives and historically high affordability conditions. Despite the rise in closed transactions, many REALTORS\u00c2\u00ae are reporting lost sales as a result of new appraisal standards that went into effect May 1 of this year.\u00e2\u20ac\u009d<\/span><\/p>\n

HVCC Issues<\/span><\/strong><\/p>\n

A June survey of NAR members shows 37 percent experienced at least one lost sale as a result of the new Home Valuation Code of Conduct, with seven out of 10 reporting an increased use of out-of-area appraisers. Seventy percent of NAR appraiser members said consumers were paying higher fees, while 85 percent report a perceived reduction in appraisal quality.<\/span><\/p>\n

\u00e2\u20ac\u0153Clearly the process needs to be revised, but the most logical approach is to use appraisers with local expertise, industry designations, and access to local data, who make a physical examination of the property and use apples-to-apples comparisons with nearby home sales,\u00e2\u20ac\u009d Yun says. \u00e2\u20ac\u0153In many cases, normal homes are being compared with distressed homes sold at a discount, which often are in subpar condition \u00e2\u20ac\u201c this is causing real harm to both buyers and sellers.\u00e2\u20ac\u009d<\/span><\/p>\n

According to Freddie Mac, the <\/span>national average commitment rate<\/span><\/span><\/a> for a 30-year, conventional, fixed-rate mortgage rose to 5.42 percent in June from 4.86 percent in May; the rate was 6.32 percent in June 2008. Mortgage interest rates have trended lower in recent weeks.<\/span><\/p>\n

Inventory Declines<\/span><\/strong><\/p>\n

Total housing inventory at the end of June fell 0.7 percent to 3.82 million existing homes available for sale, which represents a 9.4-month supply at the current sales pace, down from a 9.8-month supply in May. Raw inventory totals are 14.9 percent below a year ago.<\/span><\/p>\n

\u00e2\u20ac\u0153This is another hopeful sign \u00e2\u20ac\u201d if we can keep the volume of sales above the level of new inventory, prices could stabilize in many areas around the end of the year,\u00e2\u20ac\u009d Yun says.<\/span><\/p>\n

An NAR practitioner survey in June showed first-time buyers accounted for 29 percent of transactions, unchanged from May, and that the number of buyers looking at homes is up nearly 12 percentage points from June 2008.<\/span><\/p>\n

NAR President Charles McMillan notes that there are very good opportunities. \u00e2\u20ac\u0153Despite some of the challenges, the housing market continues to demonstrate signs of recovery,\u00e2\u20ac\u009d he says. \u00e2\u20ac\u0153The temporary first-time buyer tax credit is clearly helping people make a decision and is contributing to the overall stimulus impact, but since it\u00e2\u20ac\u2122s taking longer to close transactions, many would-be beneficiaries may not be able to take advantage of the credit before the Dec. 1 expiration date.”<\/span><\/p>\n

The national median existing-home price<\/span> for all housing types was $181,800 in June, which is 15.4 percent below June 2008. Distressed properties, which accounted for 31 percent of sales in June, continue to downwardly distort the median price because they generally sell at a discount relative to traditional homes.<\/span><\/p>\n

Single-family home sales rose 2.4 percent to a seasonally adjusted annual rate of 4.32 million in June from a level of 4.22 million in May, and are 0.2 percent higher than the 4.31 million-unit pace a year ago. The median existing single-family home price was $181,600 in June, which is 15.0 percent below June 2008.<\/span><\/p>\n

Existing condominium and co-op sales jumped 14.0 percent to a seasonally adjusted annual rate of 570,000 units in June from 500,000 in May, but are 3.1 percent below the 588,000-unit level in June 2008. The median existing condo price<\/span> was $183,300 in June, down 18.9 percent from a year ago.<\/span><\/p>\n

By Region<\/span><\/strong><\/p>\n